In last Thursday’s Turn Your Purchase Orders Into Real-Time Cash post, I laid out my Purchase Order Finance (POF) process for you.  At the end of that real-time cash post, I introduced my MONEY TREE (MT) Program. Today, let’s take a look at how my MT can benefit your business.

Money Tree

Who said money doesn’t grow on trees? Money Tree is an asset-based lending program for factoring and purchase order finance. MT evaluates your business assets, your industry trends and ongoing business feasibility.

Once our financing criteria is met, you have unlimited access to quick cash advances for your invoices or purchase orders. This real-time cash program relies primarily on the credit worthiness of your customer who issues the Purchase Order.

MT enables you to fill orders or fund your payroll without waiting for your customers to pay your invoices or for you to deliver on your purchase orders. Direct payments are made to your suppliers (for raw materials) or Lines of Credit. Your domestic suppliers will receive direct payments or Letters of Credit will be posted straight to your international suppliers on your behalf.

You can use Money Tree to access unlimited cash as long as your customers and suppliers meet the requirements of MT. From this perspective, money truly does grow on trees! You can now take on large orders knowing you have unlimited real-time access to cash to deliver your product or service.

Industries Served BY MONEY TREE

• Manufacturing
• Apparel
• Distribution
• Staffing
• Transportation
• Energy
• Service
• Printing
• Technology and IT Services
• & more…

Money Tree is typically available to all industry segments, except for construction projects.

MONEY TREE transaction Types

• U.S. Supplier to U.S. Customer
• U.S. Supplier to Foreign Customer
• Foreign Supplier to U.S. Customer
• Foreign Supplier to Foreign Customer

Your Suppliers

To qualify for my Money Tree program, your suppliers must know your product and be able to produce it in time and to meet your customer’s stipulations. Your supplier must have a good business history and track record of producing and delivering goods.

Required MONEY TREE Documentation:

• Completed purchase order finance Application Form
• Your invoice to your customer
• Your supplier’s invoice to you
• Your purchase order to your supplier
• Your profit on the transaction – gross margins must be >than 18%
• Your business History
• Your most recent profit and loss (P&L) statement
• Your most up-to-date balance Sheet
• Your time frame to produce the finished goods or to deliver your service
• Credit information on your customer
• Your supplier Information
• Your supplier delivers finished Goods or unfinished Goods

How Money Tree Purchase Order Finance Works

Step1: Your Customer gives you a purchase order for goods.

Step 2: You give your supplier your company’s purchase order to fulfill your Customer’s purchase order. The gross margin between the two purchase orders should be a minimum of 18%.

Step 3: Your supplier ships goods to you (non finished goods) or to your customer (finished goods). Payments to your supplier is made directly by my MONEY TREE program immediately or based on your MT contract.

Step 4: If the goods (unfinished) were sent directly to you from your supplier, then you will finish making the product and you ship the finished goods to your customer.

Step 5: You send your invoice for your customer’s order to my MONEY TREE program for factoring.

Step 6: MT will then factor your invoice to your customer. Your advance will be issued after subtracting supplier payments, factoring and POF fees. When your customer pays your invoice, then MONEY TREE will collect advances paid to you and factoring fees. All remaining funds are forwarded to you.

POF Money Tree Examples

POF Example 1: U.S. Supplier to U.S. Customer

You are a clothing manufacturer. You have been in business for three years and your Profit and Loss Statement and Balance Sheet looks good. You received a large order, but you’re maxed out on credit from your suppliers. Your sales price to your Customer is $100,000 and your total cost to produce your goods is $75,000. Your gross margin is 25%. MONEY TREE will purchase the goods for you from your supplier, give you 45 days to produce the goods, charge you a 5% purchase order fee ($5000, 5% of $100,000) and factor your receivables.

POF Example 2: Foreign Supplier to U.S. Customer

You are importing telescopes from Korea. You do not need to receive the goods, The telescopes will be shipped directly to your Customer, which is a large U.S. retailer. The cost of the goods is $500,000 and you will sell them to your Customer for $700,000. Your gross margins are 20% (after all your import costs). My MONEY TREE program will open a Letter of Credit to your supplier and will factor the receivables. When your Korean supplier ships the telescopes, then your Korean supplier will get paid. When the goods are landed in the U.S. and shipped to your U.S. Customer, MT will factor the receivable from your customer and pay the purchase order to your supplier from the MONEY TREE funds advanced to you.

POF Example 3: Foreign Supplier to Foreign Customer

You are an international seafood broker. You are buying seafood in Jakarta from a trustworthy supplier and selling it to a credit worthy Customer in Columbia. The gross margin on your deal is 18%. My MONEY TREE program will finance the full transaction by wiring funds to your supplier of seafood for $40,000 and collect payment from the Colombian Customer of $55,000, less our MT factoring fees, insurance and inspection fees.

Complimentary Money Tree Advisory Services

• Contact me right now at (866) 323-9123 or click this link to sign-up for a free finance consultation with me to discover how my Money Tree helps you get unlimited cash to improve your cash flow.
• Sign-up for my free financing report to discover more financing options to grow your own “money tree.”

Related posts:

1. Turn Your Purchase Orders Into Real-Time Cash!